Arizona Laws 20-1606.01. Credit unemployment insurance; provisions
A. A credit unemployment insurance policy shall contain benefits that are at least as favorable to insureds as the following provisions:
Terms Used In Arizona Laws 20-1606.01
- Credit unemployment insurance: means casualty insurance on a debtor to provide indemnity for payments or debt becoming due on a specific loan or other credit transaction while the debtor is involuntarily unemployed as defined in the policy. See Arizona Laws 20-1603
- Debtor: means a borrower of money or a person possessing a commitment for a loan of certain funds or a purchaser or lessee of goods, services, property, rights or privileges for which payment is arranged through a credit transaction. See Arizona Laws 20-1603
- Writing: includes printing. See Arizona Laws 1-215
1. The policy shall provide coverage for unemployment for any reason, except that coverage may be excluded for unemployment due to:
(a) Voluntary forfeiture of salary, wage or other employment income.
(b) Resignation.
(c) Retirement.
(d) General strike.
(e) Illegal walk out.
(f) War.
(g) Separation from the military.
(h) Willful misconduct, criminal misconduct or unlawful behavior.
(i) Disability caused by injury, sickness or pregnancy.
2. For credit unemployment insurance that provides a monthly benefit, benefits shall start after a waiting period of no more than thirty days, but need not be retroactive to the first day of unemployment and shall have a maximum benefit period of at least six months.
B. A credit unemployment insurance policy shall not contain eligibility requirements more restrictive than the following:
1. The policy may exclude from qualification for coverage:
(a) A self-employed individual.
(b) A worker in a seasonal or temporary job. For the purposes of this subdivision, "seasonal or temporary job" means a job designed to last no more than six consecutive months.
(c) A debtor who has been notified in writing of any layoff or employment termination that is to occur within sixty days of the date coverage begins.
2. The policy shall not have an employment requirement more restrictive than requiring a debtor to be employed full-time on the effective date of coverage for at least six consecutive months before the effective date of coverage. For the purposes of this paragraph, "full-time" means a regular work week of not less than thirty hours.